from asia, europe, in the united states are handing chine the biggest trade surplus in years. .ne push to tumble one of life's great second acts. our exclusive wishes and show -- soon joe -- sendup -- gentle obviate. a good monday morning to you.

the u.s. but a lot more. so did europe. it sets off a surge in china which and the nation its biggest trade surplus in years. mia is here with the breakdown. this is a big surprise to the upside. >> we have a trade surplus of 33 point $8 billion. that is the highest since january 2 thousand nine. exports beating estimates. imports are less than expected at 5.3%. china has increased their record as traders replenished existing stockpiles. just to tell you what analysts are thinking, they're happy with the export figures. global demand is picking up. the united states and european countries are picking it up. essentially shows

softer demand. not as strong as many would have liked. this may pave the way for the chinese government to perhaps say we do you really need to rely less on external demand. we need to focus on domestic demand. they are making steps in the right direction. consumer of largest iron ore. >> we already heard from the economist who saw the other side of it. also, you're on your prices are following -- falling. it is a little bit of one view to the other. we also have cpi and ppi figures. >> look at the inflation figures. is expected at 9:30 a.m. hong kong time. this is what we're previewing for the month of november. onere expecting negative .5% for china's ppi. at the consumer side

of the equation, we are expecting a rise of three point one percent. this is a slowdown from the month of october. thesel be watching closely to see exactly how these baskets of services have changed. >> that is above the 3.5%. >> some breaking news. is calling for more to make abenomics a reality. stick around. we have the details. we have china. now japan is also the focus. they're calling on them to increase the wages. inflation concern is going to happen. to relay theng wages. the party pledged to raise their

wages. toan is still part way defeating 23 years of deflation. the figures are 1.6%. they look forward to this. strong.xports are it vindicates the tiny story. there is a slight falling out. the other nations could get even weaker. toy have to depreciated where they could boost exports. it upset the likes of china and the other careers. they will lose out. a big blow.

what are the thoughts overall? here they are now. it is part of the areas addressing this. >> there is no end to abenomics. at the end of next year the cabinet will prove the related policies on the growth strategy. we will announce the timing of the execution and minister the sign to put forward these policies. >> one of the concerns, when will it be coming? quantitive easing. structural forms. is a consumption tax. it has been given. >> very big right now in terms of what these reforms are going to be. >> that is the question. you can see abenomics continue in rallying the troops.

not everybody thinks the momentum is continuing. >> they used to advise. george soros and here he is. may be the fiscal conditions become sound. our life will be terrible. there is no exit. that is borrowing words again. he wants to end deflation. it is extreme. we were told deflation. >> how viable is that? anit is going to have to see extension. if you talk about the wages, it is probably the most important

component they need to get on board. it is going to be really hard convincing the rest of the corporations that they should consider the projections. there's a economics theory of what inflation will produce. deflation is ending. biggest rise in winter bonuses. that is a big boost. these will start flowing to japanese consumers who absolutely are dependent. >> they're trying to wire this before the tax comes in. >> the fourth quarter is always usually good anyways. is an eight percent tax. >> we're going to get that breaking news out of japan in 40 minutes. you're going to take care of

that for us. we will see that supports the bigger story you have been reporting. >> we will see if this continues to support and left. >> he can hear challenges from the prime minister himself. catch it at 720 hong kong and singapore time. let's get straight to the markets. >> the australian dollar is currently trading at 91 u.s. cents. it is strengthening this morning. museum and seen gains higher. kiwi is also seeing strength this morning. 82 u.s. cents. let's head over to japan.

the nikkei last closed like this. it was higher. nikkei futures are pointing to a higher open. in theseeing weakness yen. it is at the 10317 level. that is going to support japanese exporters today. 5 wall st firms are under investigation for hiring practices in china. u.s. regulators have widened their injuries, seeing whether they broke anti-bribery laws. ended this.he bank we are waiting for official results from india state elections. the opposition is seen as the big winner. he is ahead in three state

polls. they give a pointer to the national vote which much be held by monday. could add aeal that trillion dollars to the economy. u.s. compliments on food subsidies in a latin american block. president obama praised the draft agreement. analysts say it will do more to salvage the long-running doha round of talks and to solve food shortages and tell global commerce. more on this deal later. we're going to hear. the u.s. and japanese economies will recover the most next year. find out more from the chief economist when "first up"

returns. ♪

>> australia's largest insurer shares are plunging, the biggest drop in 12 years up down 21%. it is paired off that one. unexpected net loss of about $250 million. it is due to write-downs at the north american operations. this is a stock where watching for you this morning. qbe falling the most in 12 years. that will be one of the lacquers on the sx 200. on tuesday a hearing is due to begin. into the asian on the crash.

happened in san francisco in july. people died when the bowl and triple seven hit a seawall as a came into land. they're going to look at the pilot performance. on wednesday it is hong kong's biggest debut in a year. china raise about $2.5 billion in its ipo. it was set up in 1999 to deal with bad debt from chinese banks. we're going to be watching out for the reserve bank. new zealand is expected to be one of the first g 20 nations to raise the cost of borrowing. indonesia will also make this. readers are gathered together in tokyo for a three-day summit with shinzo abe. the territorial dispute is likely to be on the agenda.

statement will be issued to save any abuse of power and civil aviation. turning to the yes it'll be a big dust turning to the yes it'll be a nuclear deal with iran. >> iran will lead monday's u.s. news. there's a new round of sanctions to force the sanctions of iran's nuclear programs. their lobbying against a sanctions bill as they believe it will go against any nuclear agreement. after more than three years, the poker rule is ready for prime time. they will meet to finalize the rule barring things from proprietary trading.

as a meet in washington, and bankers will meet in new york at the golden sachs congress. jamie dimon is scheduled to speak wednesday. they're looking for a congressional committee on the international financial systems. they will toughen the financial regulations. in an otherwise quiet week of reports, costco will first-quarter results. analysts forecast profits of the dollar three cents per share. on thursday, blackstone will set prices. helton plans to raise as much as 2.5 billion dollars. the most ever for a hotel company.

also on friday, the self-imposed deadlines are set to reach a budget deal. lawmakers had the meeting to come to some form of an agreement. down on the you latest echo data. joins us economist tonight from sydney. it is good to see you. what is the followthrough for asian markets? is a positive. we have percent -- persistent numbers. on friday we still have the unemployment rate. we have a much stronger u.s. labor market probably indicative

of the u.s. economy building momentum. the markets are staring at whether or not it is tapering. will we see the volatility from earlier this year? >> do think we're going to see that? they saw emerging markets really fall off the cliff with foreign investors taking money from emerging markets. what you think is going to happen in terms of volatility for december? i think there is a chance we'll will get them announcing some form of tapering. thatwe learned in 2013 is they are vulnerable to a tighter u.s. dollar liquidity. volatilityignificant this year. the economy is across much of the emerging world.

had their underlying momentum derailed by this capital withdrawal. >> this is boosting the gross story. we have returned from the u.s. and europe. you think this will be in a momentum to push not only china but this region for work? . it is telling us that global growth momentum is building. 2013 will probably end up being the weakest year of growth for the world economy since 2000 and eight.

if we see that momentum led by the u.s. into 2014, that i think is really going to be a good platform for the whole world economy. europe i'm not sure. there are a lot of challenges there. a greated states has platform to move to a higher rate of growth. >> what do you think of the china story in 2014? do you think reform led economic growth will be the case for next year? there is a lot of reform. i think the important thing never to forget is that china's economy looks like it is slowing too much, the government can provide a backstop to growth with its investment with urbanization requirements and so forth.

it keeps china's growth going. bena's growth we expect to 7.25. a quarter -- 7 pr i'm not too concerned about a government shutdown. >> they can get out and about 40 minutes. i cannot let you go without asking you about that. this has done a tremendous amount for japanese confidence for consumers and businesses. seeing that combined with the fiscal stimulus, the monetary stimulus seems to be working. they have momentum building. flow through until 2014. we do want to see some structural reform. investors want to see some

reform. that is the big? . they are doing their job and momentum. the figures will highlight that. are allis what we waiting for. joining us from sydney this morning. thank you so much for that. coming up, the japanese prime minister calls for talks with beijing as territorial tensions escalate. an exclusive interview. you are watching "first up." stay right there. ♪

>> welcome back. the japanese prime minister said his door is always open to china as territorial tensions continued to rise in a wide ranging interview. should thought they said it is time to reset relations between the two nations. we need each other. we should understand that. we should not let one issue control the entire relationship. both of us have an understanding that will lead to a mutually beneficial relationship. because there are issues, there is a need to have a meeting by the heads of state. i always keep my doors open for a dialogue and hope china would adopt the same stance. businessst one

publication has depicted u.s. superman. can you be specific about what is the next step for abenomics? session onplaced the implementation of growth strategies. a have interacted -- enacted genetic improvement of profitability and restructuring as well as promotions to startup businesses. effectivethe corporate tax rate, we have decided to reduce by two .4%. we will be moving forward with how this should be with the japanese companies to stay competitive. is no end to abenomics. the cabinet will improve the related policies on the gross strategy. we will announce the tightening of the execution and administer this.

>> you can get more on that and all the days top stories and you can watch his life wherever you are. download it from the app store and we will see you there. if you use twitter, it is easier to stay in touch with us. you can follow up on bloomberg television world and follow me and the others. we also have dan petrie there for you. up next we will hear from the ceo about the feature for low- cost carriers in asia. that is when "first up"

>> good morning. it is a little cloudy over your live look at victoria harbour. it is about 23 degrees of a hike today. we're 30 minutes away from the opening. ."u are watching "first up >> the buyers are back. handing china the biggest trade surplus in years. to tumble as the

opposition quit parliament. remembering mandela as details of the funeral are announced. good monday morning to you. let's get straight to the markets. the sx 200 looks like this. it is now in the red. it is down after qbe plunged the most in 12 years. we are now at 5179 levels. the australian dollar continues to strengthen. u.s. cents.ng at 91 new zealand is still in the green. the kiwi is also seeing some strength europe. 82.9 u.s. cents. let's head over to japan right now. the nikkei is closed in the green. just a fraction away. taking a look at the yen. it is weakening. is pointing to a higher

open this morning. to ben get he was going leading the games. let's switch over to china. the debt is piling up. the odds of the defaults are higher. this lens of the question. defaulthe first deep -- in china's credit market. quite let's paint a picture of what is happening with some of these done financial companies. they are faced with heavy debts. they also have a very tight cash supply. this is a perfect storm for them to see their very first default. they first started regulating back in 1990 seven. they have not seen a default since then. principledn of securities must be repaid at some point next year. that is 19% more than this year.

the majority will come from these note that have to be reading. will be thenority interest that is due on these payments. you can see an increase in interest rates. it adds more fuel to the fire. the timing could be right. >> as china tries to liberalize the markets and make market dictates interest rates, e could see a first-time default. the odds are increasing. thank you for that. but let's go for a roundup up of the corporate stories. bickle in run 1/5 of its value after baidu stop taking over the money. they are moved to forbid banks

and ensuring the transactions. this is not the currency with the real meaning. the company that tied up asia's biggest ipo is putting its buying spree on hold. they said they would take a break for 12 months. they want to boost the current businesses to catch up with coke. on next focus will be vietnam and indonesia. qantas baby soon given a -- may be soon given a lifelong. aey have commitment of about billion dollars. is job cuts. the s&p is cutting the ratings. that is being monday news. i am john dawson. >> thank you. in asia areriers facing ever-increasing competition. they months the skewed last year. the demand for affordable air

travel can only increase. >> this is very encouraging. first-year demographics. you have a large expanding population. you have economics. you have socioeconomics which is people starting to value more of their leisure time. all of this feeds into more and more demand. unique geography, it is no reason that people are very excited about the low-cost area nation. this includes australia, china, korea, japan. opportunitiesy of in china. there are 12 million people. with directtent

service to singapore. there is a gold mind. >> where will you expand? are we looking at china? >> we have four cities in china. add more debt. australia, india. >> they have expanded more and more to get into the space. issues could crop up. >> i dispute that wholeheartedly. we are regulated by the same people. there's not one rule for all carriers. we abide by exactly the same regulations. we must maintain the same standards. we maintain the same company. absolutely. there should be no concern or reason for thinking that most low-cost carriers are different. >> is this higher given that there is a unit of this

associated with quality. havee expectations really functionality and strength. it is absolutely right to be here. we meet with both of those. we provide this very cheap from point a to point b. we will be charging from the add-ons. beginning, perhaps people -- ofnsure of what how'd how this would relate. i think we have educated the markets. realize we get an extremely good value. >> checking some other stories making headlines around the world. the crisis in china has escalated. missy --the delimited

illegitimacy. this comes as antigovernment protesters prepared a renewed push to topple the prime minister. they want to replace it with this. that government can do under the constitution under the law and that might follow, we are willing to work it. day it will one leave apart. is expanding its air defenses zone, adding to regional tensions sparked by beijing similar move. korea's his own covers two islands and a submerged rock. discuss the issue

when he visited seoul, beijing, and tokyo. north korea has now confirmed un'swall of kim jong uncle. he was seen closest to the camera. over the weekend, the shot was tighter. this is the second most powerful figure. charged with corruption, drug use, and other antistate acts. fog is forecast once again. conditions have been like this for nearly a week, prompting an orange alert for severe weather. it left her stranded on the side of the road. >> south africa will hold a memorial service for nelson mandela. at least 200,000 people are

expected to attend. his body will then lie in state editorial until the middle of the week ahead of sunday's villa. specialrose has a program remembering nelsen mandela were his guests give us his memories and antidotes. >> what was interesting is that they really talked about his politics. people forget he loves ports and boxing. he's to practice boxing in his jail cell. all are fascinated by global sport. they followed it closely. they wanted the guards to update him on various sporting events. >> that is one to watch. you can see that later today. remembering nelson mandela errors at 1:00 p.m. singapore

time. up next, china's trade surge. will japan follow? we will find out. stay with us. ♪

>> are moments away from the latest data on japan. let's assess the process of abenomics. how is it doing? joining us is ed roberts. here to see you. let's start with abenomics. how is shins on they doing? number three? >> good morning. this is more like a thousand arts. seeing incremental changes. it will be a step-by-step process rather than one big aero.

recent news we have liked is the toyota and hitachi raising wages. arethese things indicate we on the march toward 2% inflation. that indicates it is still working. say 1000 arts. doesn't that mean there are 1000 chances that some of these are going to miss the target? >> absolutely. we do not expect all they -- abe will win every battle. we think some are far more important than others. he has a political capital to win the battles he needs to win. we think is equivalent to the second coming of the black ships. if it is probably implemented, it could unleash tremendous creative forces in the industry. it could be a tremendous step forward to see it open up along the lines. we think you will use this

firepower appropriately to make sure those types of pieces of legislation are fast. we have spoke exclusively with shinzo abe. no end toere is abenomics. listen to what he had to say. regarding the effective corporate tax rates starting next fiscal year we have decided to reduce it by 2.4%. we will be moving forward with reviews and studies as how this should be in order for japanese companies to stay competitive. >> >> at inorganic level, give us an example for what this is going to mean in real world terms. mood.this a great

it is more competitive on a regional basis. thatigger message here is this is an indication that japan finally gets it. for the last few decades the japanese do not understand. here is an entire regimes that basically doesn't and is trying to get japan much more competitive. that is an incremental step forward. we would like to see that. it indicates the game is going forward. what is your expectation? think therally numbers will be good. earnings season numbers came out quite well.

we think we are still on the march forward to 2% inflation. not so important to that specific number as the directionality is so positive. we think it will certainly continue. breach thate yen one of three level. a lot of people calling for that. create ort going to continue the momentum that we are seeing for exporters as well. it is very positive for sure. the investment advisers, we have been seen -- saying that we will be-107 or 100-110 the range for the dollar yen in 2014. we may be getting there sooner rather than later. very muchhis is

related to what the federal reserve will be doing as far as potential tapering sooner rather than later. it is an important part of the equation. >> i want you to stick around for us. this is coming up in just a few minutes. stick right there. we will get right back to you. still to come, we are moments away from the latest track data from japan. -- trade data from japan. what goes into the making of a luxury pen. that is up. more in a moment.

>> welcome back. the gdp coming out to 1.1% on an

annualized basis. it is the third quarter revised figure which is a bit below estimates. they figure that they will cross the yen. you can see it holding. other headlines, japan third quarter revised is only up 5.2%. business spending is unchanged. gdp of 3.3%. third quarter revised figure for belowup 1.6% is coming 1.1%. it is doubly disappointing. the yen is holding its own. we are looking for these coming out. it does not come out just yet. we're waiting on the trade figures and exports. are rising. this is much wider than forecast

. exports are stronger. they have not come out yet. the gdp third quarter is not growing as fast as the plan. not great. and tore looking ahead the japan open in just a few moments. closed in the green. it is still pointing to a higher open in singapore traded futures. the yen little changed despite revised gdp in the third quarter. estimates of 1.6%. let's get some reaction to the breaking data and head back to where the advisers rejoins us. it is kind of disappointing.

>> my initial comment is keep your seatbelt fascist. universal never quite be what you want them to be. there's no cause for panic. aren't numbers different. they're the largest partners by far. improving u.s. economy is good for the japanese economy. not the best number in the world but by no means the worst. >> how are investors supposed to play this dataset? >> we still find a large number have exposureot

to the japanese equity markets in any form. we think that is a big mistake. there has been significant increases in value. we expect further significant increases in value. there is almost no doubt that there are going to be some big winners in the japanese economy going forward. >> thank you so much for that. >> all right. thank you so much for thoughts on the dataset. remember wincing attachment writing a letter with a real pen? things have changed. with the rise of mobile devices, one company is holding onto tradition. honda vehicles have been to the pen maker to see how fast honda nichols has been to the pen maker to see how it has survived. gloves at the pen

factory. who really uses pens in the digital age? get, theotifications i more i appreciate it. there is a strong hunger for that. a mass manufacturer. eight charlie chaplin additions. 32,000 someone says euros per penny say that is crazy. what do you say? this.y people say if they see this first, they say it is crazy. they make and show them how it is made. >> i am holding 200,000 euros worth of gold. this weighs five kilos.

it gets rolled into the right form and then cut out. then it gets stamped into the dip. with 100 manufacturing and technical steps, no two pens are ever alike. it cost an extra 1200 euros for the basic service. dna from thehe hand and then we can adapt to and find theng perfect hanker for the customer. >> production takes 2.5 years .or a fully personalized pen >> the beautiful thing is when ever we have a collector who has been collecting us for 20 years and when we do the first, they behave -- do not worry about

misplacing it. >> to starlet -- to stop losing your pen as soon as you buy a montblanc

from asia, europe, and the u.s. are back in to need to china's biggest traits are place in years. asian stocks are set for a rebound. one of life's great second acts. why it is better this time around. coming to "first up" you live from our asian headquarters here in hong kong and stringing a mobile and bloomberg.com.

let's go straight to australia where the afx to hunters -- asx 200 looks like this. it is in the right. it is fluctuating this morning after a positive start to the session. the lossesseeing this morning. australia at 91 u.s. cents after china reported the biggest traits are plus in years. this is surging rights out of the gate. this is because of the weaker yen. korea, this is getting underway as well. like 1% up. won isrean strengthening. abenomics is not leaving if

magic want just yet. it came in below estimates. many ask where is that third arrow? a tradeve not had balance. we had growth. the actual number for the third quarter is revised to gdp. the forecast was 1.6%. not been great. a bit of the blow. the in holding this. some are saying it could go to 115 because of the quantity of ative easing. this is a pretty powerful surge. overall, you can see 103. no action at all. this was remaining encouraging. it is way better than forecast. way better than forecast. if the figures are accurate about the global recovery.

the reinforcement of that. it is 1.1%. >> did we hear from oppy as to what exactly he makes of all this? >> the third arrow is what is missing. many are saying when is it going to happen. many could argue the full tower has been shot. they're being raised to 8%. >> there's no end to abenomics. related policies on the growth strategy. >> if they continue, the fiscal condition becomes found.

there is not existence. >> it is discouraging. bye for the terrible. there is deflation. there is a deflation. they could say we succeeded in that. what are they like? >> we have seen what they were left with, 15 years of deflation and how do you get out of it? >> hyperinflation not a good answer. >> what do you know. >> stay right there. we're going to keep an eye on japanese exporters. toyota right now taking a look at that. honda is higher as well.

canon, panasonic, we are all seen some big gains for the exporters. that is being boosted today by the weaker yen. the u.s. bought a lot more. so did europe. that set off a surge in china's exports. here is the breakdown. are seeing the biggest trade plus since january 2009. the is being driven up by exports. it is rising 12 .7% compared to the previous year. imports also saw a rise. not as much as expected. you could see the trade balance is a little bit higher in october. you can see a big increase from the dip we saw over the past six months which was in the month of september. analysts are happy with the export figure. it shows you that the global

backdrop is picking up. we're seeing momentum in terms of demand for chinese products that can be put in american shops like walmart and target. what does this say about the import figure? perhaps we are seeing sluggish demand. softer demand is what some are referring to this in terms of china's domestic economy. the export figure could really pave the way for the chinese government to step in and say we got the export side down. let's focus on the internal and really just revving up internal consumption. how palatable, will these prices before consumers? >> you would see a pickup if prices are reasonable for the consumers. in ppi.cpi the expectation we are looking for a rise of three point one

percent. in the month of november, it fell from the previous month. average that the seller would get by domestic producers. that is for a fall of 1.5%. you can see it on the screen. it is what you saw in the previous month and consistent since the august time frame. >> thank you so much for that. that an being reported additional 5 wall st firms are under investigation for hiring practices in china. wide into their inquiry, examining whether jpmorgan broke anti-bribery laws by writing well-known people children. we are waiting for official results for india's state election. this is ahead in three state

polls and also defeated congress in delhi. the final state will begin counting today as it gets a pointer to the national vote which must be held by may. the company that completed asia's biggest ipo of the year is putting acquisitions on hold. they will take a break from m&a activity for 12 months. they want to boost current businesses to catch up with coca-cola. the next focus will be on vietnam and indonesia. shares just started trading in tokyo. next, predicting a good month for the markets. find out why our next guest is thinking positively about december. that is coming up. stay right there. ♪

>> welcome back.

let's take a look at the stories we're going to be watching out for you. a hearing is due to begin into in asia anna airline crash july. three people died there when the boeing triple seven hit a seawall as a came into land from seoul. take aety board will look at pilot performance and automated aircraft as well as emergency response protocol. is hong kong's biggest debut in a year. they raise about $2.5 billion in the ipo. it was set up in 1999 to do with bad debt from chinese banks. they're also going to be looking out for the rate decision on thursday as developed countries maintain rates at record lows. be zealand is expected to one of the first nations to raise the cost of borrowing. indonesia can also make a decision. inders are going together

tokyo for a three-day summit with sin joe -- shinzo abe. be on thekely to agenda. the news agency reports a joint statement will be issued. the wto is celebrating the first major deal in its history after some hard bargaining and bali. let's see what was at stake and how ministers were forced to compromise. as the international trade minister. >> thank you for joining us from jakarta today. tell us how significant this deal is. not only for indonesia before the world. it is significant. we have not been able to achieve an agreement amongst the members for quite some time.

getid set out to basically an agreement among all of us ince 2001 or even earlier 1995. we have not been able to get an agreement. that is the first part. the second is that the package, even though it is small, it basically delivers on the parts the developing economies in the agreement that was reached i think we'll set a very good traction for the purpose of ahead on theand dough hot agenda. this is not so bad. how did you get here? there must have been a lot of compromise. these have been ongoing for years. this deal is significant. how did everyone get to the same place?

>> it was pretty sleepless. the ministers that came to bali understood that if we were to walk out of bali with nothing, i think you can pretty much say goodbye to the multilateral trading system. as much as we have seen in the economies around the world, i think it is important to keep this. this is the very reason why certain countries were willing to show flexibility. we showed flexibility and everybody that if it were up to everyone's national interest without showing any kind of flexibility we would not be able to reach an agreement in bali. baliy was coming to expecting to get 100% of what they wanted. i thought that was a good start to the week.

it was pretty dramatic at some points throughout the week. >> what do you mean dramatic? >> everybody saw the disagreement between india and other developing economies. be developing economy is spearheaded by india and insisted on linking the interim solution for the agricultural package to a permanent solution. this was something that was very difficult for the americans to accept. we came to a landing. it was along with three other countries. suggesting some change be

made. it is way past the deadline of the maintain. -- of the meeting. we managed to pull through. able to get all 160 countries to agree. i think a lot of this should go to the director general of the w 20 -- wto show the perseverance to pull everybody together. has been a very good place for a lot of agreements to take place. these are some of the factors that contradicted to the success. >> bali is a beautiful environment for this type of compromise.

setting forxed negotiations. ink about what this means terms of precedents for the very heightened talks on subsidies for the next stage in terms of agreements?l this is one in the most sensitive issues. does this set a precedent for further talks? >> it to. i hear the tone of all of the aveloping economies, reservation to the subsidization that was done by the developed economies. this is a horizontal imbalance. the package that was approved to toow developed economies to

do socialization -- subsidization. there are hundreds of millions of farmers. the just issued a few security law. indonesia has 250 million people. we have a lot of farmers. we have a lot of people to feed. our ability to do stockholding of certain staples and subsidization i think will be for not only us but the developing economies. it will set a process -- precedent in terms of treating the nuance for the purpose of rebalancing the imbalances we

might have seen in the past many years. >> top specifically about how on thisl impact nations deal? >> the audio nations, we have a number of agricultural economies. this is very important. we have one ldc country. package that we agreed was the ldc package. it gives a number of benefits. standpoint,culture it will be able to benefit from the package.

>> president obama says it represents the rejuvenation that you remarked on as well. in terms of the global market, how does this move the world forward? there is going to be in augmentation of economic sites by way of the trade facilitation that was agreed. streamlineng to help traffic of goods and services. this will certainly help boost trade in all countries and will supposedly boost the economic economy.the global estimates have been made by many analysts. one version is that this'll add about a trillion u.s. dollars to

the global economy just by way of the package we had a few days ago. that is one angle we should be recognizing. by way of the agreement we have reached. >> thank you so much for joining us from jakarta. congratulations on the first multilateral agreement 100 59ted by the members. dramatic indeed. the outcome is very hopeful. up next, producing a good month for the market in asia. why our next guest is thinking positively about december. that is coming up after this short break. ♪

>> good monday morning to you. our next guest is the single -- singapore-based head of research . he oversees client assets. it is good to see you. talk about the japan data that we got. third-quarter gdp coming in at 1.1%. .hat was a disappointment they said it would look more like 1.6%. does that concern you a little bit? had managed toi

read some analysts comments before i came on the show. i notice the reason for the revision was due to downward revision in inventories. the consumer spending was up. i'm putting them together. impending tax the would be problematic. less.tocked the the data.ess for the consumer remains in a pretty good mood. i think it is a neutral member even on the surface it looks like a negative one. >> what about abenomics? critics whoarken to said this is going to hurt the economic revival of japan? do not think so. he has been quite explicit to

the business community that companies which have seen an increase in the profitability should do the right thing and pass some of that along in the form of better numeration to their employees. to offset the consumer tax. i am hoping and thinking it will come out of the change. although the data you mentioned this morning, the gdp was disappointing. encouraging, very particularly the cpi land prices. generally it is a better feeling in japan. >> let's get to some of the charts. this note yield, talk about this. tell me what you are seeing and what this all means?

>> the data in the u.s. continues to really hit this off the ball. we set this off with the nonfarm payrolls. there's been all kinds of weather data as well that shows back.s. economy really is on track. it is only a matter time before the federal reserve begins to reduce its asset purchases. >> market? >> i'm going to leave it there. i want you to rejoin us after the break. we got a lot more to hear from you. japan addresses the territorial tensions with china. ♪

>> good monday morning. the sun is trying to pick out against a mostly cloudy morning. we are an hour from the open of trading. you are watching "first up." japan leads the rebound after age's words weekly finish in months. the buyers are back. ministers handle out a deal in bali. we're going to look at the implications for asia.

the morning. japan's nikkei 225 is solidly in the green. we are really in the first early stages of trading here on a monday morning. 15 91 is your level. the asx 200 is seeing some pressure. this is australia's largest lender, dropping 19%. that is dragging down australia for you. the debt is piling up. the odds of the default are higher. could we see the first in the debt market? a lot asking that. >> good morning. publicu having in companies, that sector right there you are seeing heavy burdens on the balance sheets.

this creates a bond default. see the first-ever bond default in the public marketdomestic debt since 19 97. according to china international, 420 $7 billion of debt is due next year. that is a 19% increase compared to this year. you can see that on your chart. let me break it down to you. this is estimated for next year. eb thing about more broadly, this is a record number for china and tt size of ireland's

entire economy. sense for which sectors will be the most likely default. those who stayed overcapacity are highly leveraged. insteel industries, shipbuilding, anything that is concentrated in that area. >> thank you for that. for more on china, we are rejoined by mark matthews of julius baer. for the time being we had some really good data sets coming out of china this weekend. what are your thoughts on this? >> the trade data is what you are referring to. him makes the world to look good. it was the exports that really surpassed expectations. 12%.nk they were up

that points to a recovery in the world economy which benefit stocks versus bonds. imports were about 5.3%. a little weaker than this. it tad on the disappointing side. the sets showed a modest recovery in the economy. >> part of the big story is europe and the u.s. basically coming back and saying we want to buy more stuff from china. what do you see in terms of of these bigterms trading markets for the rest of asia next year? >> i do not want to sound all breathless and naive. i do not really see a whole lot of problems in the world economy right now. of positiveot

tailwinds. these are out of the recession. the u.s. is going into some pretty decent growth. it is better than what it was this year. and mainly pretty positive about equities. let's look at another chart that you put in your report. are thinkingou that we could possibly see you retracing it? on a technical bases you can see that we are hitting the trendend of a rising channel which i hope that we to retrace some. there you go. there is the charge. otherwise it will start looking like a parabola. parabolas always end in tears. next year, i will

give you an interesting statistics. if you look at the performance of the s&p over the last 60 years, when the market has risen as much or more as it has this were 11 other years going back 60 years when the market rose by that much. did the of those years market actually fall the next year. the average for all 11 including 1989 was a 13% increase. market looks a little extended right now. i believe next year will be an up year. >> very good. mark matthews, head of asian research. for at's go to john roundup of today's big corporate stories. >> these are the company news. china's biggest search engine stopped taking local currency.

they are ensuring transactions. this is not the currency. the same legaloy status. qantas may soon be given a lifeline. a group of investors are said to be mulling a bit. about $1 billion. -- reported a record first-half loss. qb is plunging the most in 12 years. this.orecasted the company now sees a loss of $250 million. it is forecasting a profit of over a billion dollars. they crashed 20%. the guidance reflects the continued issues in america. premiums fell 16%.

your checking of qantas qb down by 19%. those were the company news. i am john dawson. >> the door is always open. this continues to rise. shinzo abe they said it is time to reset this between the two nations. we need each other. we should understand that. we should not let one issue destroyed the entire relationship. both of us have an understanding that will lead to a mutually beneficial relationship. theree there are issues, is a need to have a meeting by the heads of state. i always keep my doors open and hope china would adopt the same

stance. least one international business publication has dipped depicted u.s. superman. can you be specific but what is the next? have placed this as a session we focused on the growth strategy. we have enacted industrial competitiveness strengthening laws which show this at a level and show dramatic improvement. effective rates, we have decided to reduce by 2.4%. we'll will be moving forward as to how corporate tax should be in order for companies to stay competitive. to abenomics. next year, the cabinet will approve the related policies. we will announce the timing of the institution.

>> you can get more on that and all of the day's top stories. you can watch us live where ever you are. all you have to do is get to the bloomberg app. we will see you there. may have stillo this but our next guest believes it may not be enough to reinvigorate the global trading blocs. ♪

x is as monday, december 9. the cost be could be heading for a bomb first 2014. they predict it could rise to records as exports continue to climb. the latest economic numbers from japan show prime minister abbe has a talent on his hand.

growth slowed more than the estimated.initially gdp grew an annualized one point one percent from the previous quarter compared to a preliminary reading. abbe is pinning his hopes on his company raising wages as he bids us to enslave the world number three economy. the wto is celebrating a deal that could add a trillion dollars the global economy. deal in thefirst eight year history of the wto. it will do more to salvage the long-running rounds of cops and food shortages. indonesia's trade minister gave us his view about the significance. >> we set out to get an agreement amongst all of us. we havelier in 1995, not been able to get an agreement. that is the first part. packagend is that the

is ambitious. there is an agreement that was reached. we will set a very good traction for the purposes of moving along . >> let's talk all things trade. of economicsident and risk consulting joins us live from singapore. this deal is coming in. in.'re trying to sneak all was well. the significant we heard is with president barack obama. do you agree? a big win.

bringing about consensus with this many players is immensely difficult. is really the plumbing underlying the global trade system and bringing the process transparency into the least developed countries to get to where you were just saying. the economic benefits will really hit those emerging companies to where the transparency and even some of the payments that are in formal today it may be the fiscal position as well. that thees this mean wto has regained their legitimacy in the world leaders in terms of bringing all of these groups together and all of these nations together? wto lostot think the legitimacy as the trade mechanism. i have a very forceful

adjudication mechanism. a lot of this was a little misplaced. i think what is happening is this is becoming the foundation for some of these agreements. then you have these multilateral agreement that are more tackle -- tactical. this is more the foundation and the class of goods rather than a specific type. >> he also says it creates a precedent for talks moving forward. what does this mean? hitting some of the same emerging country issues versus developed country issues.

the issues are around intellectual property, around public health. it is similar to the agricultural issues that we saw in the wto negotiations. to have to be a middle ground between the developed country position in the emerging and middle income position. whether it is intellectual property rights or the force by which pharmaceuticals can be forced and extended in the there is the impact of the fiscal position that was subsidizing things like pharmaceuticals. >> do you think this is a priority for the u.s. to get the deal done? i think it is priority. i think getting something done

in 2013 has deal never really been viewed as a realistic goal. think getting something done this week is probably incredibly difficult, aligning all of the different views. the difference between the u.s. was very far. i do not necessarily thing that the tpp is any better positioned. i think it will take quite some time before they can really come to a position for all parties. want to ask you about india. it looks like there is a big .omentum push >> the interesting thing is the leadership andnd specific issues. to the specific issues were the

leadership of the schedule. and around things like corruption and peripheral issues like foreign investment and issues. -- played a key position, there is a key position in setting the foundation. there were also very strong state level leaders that they put forward. congress does not have that level of leadership right now. this has not gone well at all. not necessarily believe the transition of the congress is having will be in their favor. congress needs to do a better job of reaching out to the .ublic they have seen success there in these elections. >> thank you for that.

checking some other stories making headlines around the world. the crisis in thailand has escalated with main opposition protesting the legitimacy of the government. they claim to parliament is no longer accepted by the people. push.ters had a new they wanted to replace her with an unelected popular counsel. they have done the details. that government can do under the constitution we are willingaw to work with. our doors will open any time. we hope one day people will some people will get the support to us. >> south korea is expanding its

air defense zone in the east china sea, eyeing to tension sparked by beijing. this is also within the defense area. joe biden discussed the issue when he visited seoul, beijing, in tokyo last week. north korea has confirmed the un's uncle. jong he was seen closest to the camera. over the weekend, the shot was tighter, removing them. shot to removen a man who was the second most powerful figure. we are moments away from the latest tribe -- trade data from japan. making of ato the luxury pen. this is "first up."

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>> good morning. i am rishaad salamat and we are "on the move there, -- "on the move." japan leading asia's equity markets, the nikkei to 25 up nearly two percent. handing china its biggest trade surplus in years. one last push to topple yingluck as the thai opposition quits parliament. let's have a look at what is happening with equity markets. singapore just about to start off its trading we